HOOD · 10-Q · 2026Q1 · Full report
Net Interest Income Trends
Robinhood Markets, Inc. · 2026-04-29 · Importance 50 · Surprise 24
Net interest revenues increased by $69 million for the three months ended March 31, 2026, driven primarily by higher margin interest and net credit card interest as margin borrowers and the credit card business grew. As of March 31, 2026 total interest-earning assets were $60,777 million, with the margin book yielding 4.45% and cash and deposits yielding 2.63% for the quarter. Management notes decreases in yields versus prior periods (e.g., margin yield down from 5.21% year‑ago) and calls out a lower short-term rate environment impacting interest on corporate cash and investments. Management specifically warns that any potential future rate cuts by the Federal Reserve would negatively impact net interest revenues and customers’ returns on cash deposits, identifying interest-rate policy as a material macro risk to this revenue line in the near term.
Key facts
- Net interest revenues increased by $69 million year over year for the three months ended March 31, 2026, primarily driven by higher margin interest and net credit card interest.
- Credit card, net interest-earning assets totaled $1,132 million as of March 31, 2026 with an average balance of $1,084 million and an annualized yield of 11.81% for the three months ended March 31, 2026.
- As of March 31, 2026, margin book balance was $16,953 million and average margin balance for the period was $17,344 million with an annualized yield of 4.45% for the three months ended March 31, 2026.
- As of March 31, 2026, cash and deposits were $16,669 million and the average cash and deposits balance for the period was $13,974 million with an annualized yield of 2.63% for the three months ended March 31, 2026.
- Cash Sweep (off-balance sheet) was $26,023 million as of March 31, 2026 with an average balance of $29,019 million and an annualized yield of 0.62% for the three months ended March 31, 2026.
- Securities lending, net interest revenue decreased and securities lending contributed to volatility in net interest revenues with year over year declines referenced due to lower collateral balances and higher stock loan interest expense.
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| revenue | positive | realized | +6.5% | Net interest revenues increased by $69 million year over year for the three months ended March 31, 2026, primarily driven by higher margin… |
| revenue | positive | realized | — | Credit card, net interest-earning assets totaled $1,132 million as of March 31, 2026 with an average balance of $1,084 million and an… |
| revenue | positive | realized | — | As of March 31, 2026, margin book balance was $16,953 million and average margin balance for the period was $17,344 million with an… |
| revenue | negative | realized | — | Securities lending, net interest revenue decreased and securities lending contributed to volatility in net interest revenues with year… |